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foreign corporation in Hawaii and taxation

I am in the process of buying a small business currently located in Hawaii. My own small company (S-Corp) is a California corporation, and I am in California. I expect to use the services of a Hawaiian based warehousing company to warehouse some of the inventory and to ship orders to Hawaiian based customers. Does this mean I will need to register as a foreign corporation in Hawaii, and, more importantly, does this mean I will incur any Hawaii tax? For ex., the GET tax, or any others. Any advice or even pointing me into the right direction as to where I might find the info would be much appreciated.

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fontrevault
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Yes, your S corporation will be doing business in Hawaii and will be required to obtain a Certificate of Authority from the Department of Commerce and Consumer Affairs. Information and online registration are available at

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A federal S corporation is exempt from the Hawaii corporate income tax to the same extent it is exempt from federal income tax; however, an S corporation doing business in Hawaii must file a return on form N-35. Individual nonresident stockholders are subject to Hawaii individual income tax on S corporation income apportioned and allocated to Hawaii. The corporation will also be subject to the General Excise and Use Tax, which is essentially a gross receipts tax imposed on virtually all forms of economic activity in the state. Forms and information can be found at the Hawaii Department of Taxation web site,
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Katie in San Diego

Reply to
Katie

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